Tuesday, April 19, 2005

There you go again..

"Most investors are only familiar with oil cycles in the 1990s, when the price modulated gradually and moderately," Murti says. "The current environment is more like the 1970s." That may not sound like great news for consumers or business, but remember that the '70s weren't a bad time to own oil stocks. Which is the point of Murti's report in the first place. He's an oil analyst. Recommending oil stocks is his primary charge.

"The fundamental shift is not a bubble generated by speculation, but that of a systematic upward shift in the long-term price of oil," Jeff Currie, a managing director at top energy derivatives trader Goldman, told an energy conference.

"I'd like to argue that we actually have a bear market right now at $50 per barrel of oil," Currie said.